26231970 Evaluating the Effectiveness of Maintenance Strategies Slides 1

7/27/2019 26231970 Evaluating the Effectiveness of Maintenance Strategies Slides 1

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Evaluating the effectiveness of

maintenance strategies



Introduction

(Pinjala and Pintelon, 2004) conducted surveywithin Belgian industries, 71% out of 46respondent considered that maintenance couldbe used as a tool for enhancing company’scompetitive advantage.

2 groups: Concern consistencies

Concern contribution

This paper, Hayes and Wheelwright’s 4 stageframework is applied in identifying andevaluating the effectiveness of a givenmaintenance strategy.



Maintenance strategy and its effectiveness

Swanson (2001) explains 3 types of maintenancestrategies: Reactive strategy (CM)

Proactive strategy (PM and PDM)

Aggressive strategy (TPM)

Tsang (2002) identifies 4 strategic dimensions of maintenance: Service-delivery option

Organization and work structuring

Maintenance methodology

Support systems

Often leads to the simplification of the maintenancefunction just as corrective and/or preventivemaintenance.



Maintenance strategy and itseffectiveness Define as a series of unified and integrated pattern of

decisions made in 4 structural and 6 infrastructuraldecision elements. (Pinjala and Pintelon, 2004). Table 1.

Cholasuke et al. (2004) studied the status of maintenance management in UK manufacturingorganizations based on a pilot survey. They categorized

the maintenance effectiveness measures into 9 areasbased on a literature study: Policy deployment and organization Human resources management

Financial aspects Continuous improvement

Contracting out maintenance Maintenance approach

Task planning and scheduling Information management and CMMS Spare parts management



Table 1



Maintenance strategy and itseffectiveness…

Campell and Jardine (2001) propose 5 levelsof maintenance excellence: Novice

Foundation

Apprentice Journeyman

Mastery

This paper mainly considers the consistency

and contribution criteria suggested by Hayesand Wheelwright.



Methodology

Evaluating such strategy can be much morecomplex.

Appropriateness of a given maintenancestrategy should mainly depends upon

manufacturing and business requirements. Should internally consistent with the strategy

elements (Table 1)

Should also externally consistent with the

business environment (e.g. governmentalrestraints on safety and the environment).



Stage 1: Minimize negative potential –internally neutral

Manufacturing StrategyEffectiveness Framework

Maintenance StrategyEffectiveness Framework

• External experts are used in making

decisions about strategic

manufacturing issues

• Internal management control systems

are the primary means for monitoring

manufacturing performance

• Manufacturing is kept flexible &

reactive

• Maintenance is considered just as a

secondary function. No internal

expertise is developed.

•Rely heavily on OEM or external

service provider to solve complex

equipment problems

• Maintenance on reactive basis

• Objective of maintenance is to keep

equipment running



Case example

Stage 1: Internally neutral DSN (not its real name) annual sales of over $800million.

Employ 5000 people.

Maintenance employ 24% of the total workforce.

Demand exceed supply.

Downtime is around 16% while competitors maintain it at lessthan 10%.

Outsources more than 50% of its maintenance activities.

More than 70% of its maintenance is done on a reactive basis.

Total annual budget on maintenance is around $30million,

represent 15% of total operating costs.



Stage 2: Achieve parity (neutrality)with competitors – externally neutral

Manufacturing Strategy

Effectiveness Framework

Maintenance Strategy


• “Industry practice” is followed

• Planning horizon for

manufacturing investmentdecisions is extended to

incorporate a single business

cycle

• Capital investment is regarded as

the primary means for catching up

to competition or achieving a

competitive edge

• “Industry practice” is followed in

matters regarding maintenance

practices, outsourcing, equipment

(buying equipment that requireless maintenance), similar to its

competitors

• Majority of maintenance is

carried out on reactive basis and

reasonable amount of preventive

maintenance is also done

• Maintenance role is neutral at

best but they define that role in

relation to its competitors





the business strategy – internally supportive

Manufacturing Strategy


Maintenance Strategy


• Investment are screened for

consistency with business strategy

•

Changes in business strategy areautomatically translated into

manufacturing implications

• Longer term manufacturing

developments and trends are

systematically addressed

• Maintenance are incorporated in

company’s overall strategy.

•

Not fully exploited

•Maintenance crew are better

equipped with skills and training

•Proactive maintenance policies are

carried out

•Percentage of breakdown

maintenance in low



Case example

Stage 3: Internally supportive



Stage 4: Pursuing a competitiveadvantage – externally supportive

Manufacturing StrategyEffectiveness Framework

Maintenance StrategyEffectiveness Framework

•Efforts are made to anticipate the

potential of new manufacturing

practices and technologies

•Manufacturing is centrally involved

in major marketing and engineering

decisions

•Long-ranged program are pursuedin order to acquire capabilities in

advance of needs

• Maintenance considerations are

incorporated in major capital

investment decisions, also as apotential source of a competitive

advantage

• Often integrated with engineering

•Managed at world-class standardsin all aspects thru continuous

improvements

•Equal attention to maintenance and

its potential is fully exploited



Case example

Stage 4: Externally supportive



Conclusion

This paper mainly represents an attempt toexplore the operational issues of Hayes andWheelwright’s four-stage framework withrespect to maintenance strategies.

These case examples indicate thatmaintenance, if managed properly, can alsocontribute to enhancing the competitiveadvantage of a company.

This study shows that companies that seek abalance of excellence in all of their functionsperform better.

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